AbstractAlmost all existing literature assumes immigrants immediately assimilate in the receiving country. In contrast, the present paper considers the case of non-immidiate assimilation, and analyzes immigration conflicts in an overlapping generations dynamic system. We examine three types of conflicts that arise when immigrants come in: skill conflicts that affect the capital rental and also cause the wage gap to change between skilled and unskilled workers; intergenerational conflicts that lead to different impacts on the young and old generations; and distributional conflicts that affect each generation's life time utility unequally. The degree of substitution between natives and immigrants in production plays a key role. We also analyze the welfare composition in detail generation by generation, and provide policy recommendation for each case.
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Bibliographic InfoPaper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number DP2012-29.
Length: 33 pages
Date of creation: Oct 2012
Date of revision: Dec 2012
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More information through EDIRC
Immigration; Overlapping generations; Inequality;
Find related papers by JEL classification:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-11 (All new papers)
- NEP-DGE-2012-11-11 (Dynamic General Equilibrium)
- NEP-MIG-2012-11-11 (Economics of Human Migration)
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